PSA Peugeot-Citroen and Ford have reportedly expressed interest in sourcing cars from OpelEnlarge Photo
Bidding for General Motors’ Opel division has intensified recently, with the German government revealing late last week that only two parties remain in the bidding war – Fiat
and Magna International
(together with Russia’s GAZ Group). While it’s been speculated that Fiat is considering using Opel designs
for its recently acquired Chrysler
, new reports are suggesting that Magna may use Opel as independent vehicle supplier for other carmakers.
According to Germany’s Welt am Sonntag
newspaper, if Opel needed to reduce production of its own core models then any unused capacity could be used to manufacture vehicles for other carmakers. Inside sources close to Magna revealed that some of the possible third party carmakers include Ford and PSA Peugeot Citroen. The source went on to reveal that Magna has no plans to close any Opel factories in Germany, although it may shut plants in Antwerp, Belgium, and Luton, England.
Magna, together with Russia’s GAZ Group, is reportedly considering taking a 50% share in Opel. Under the alleged plan, Magna would purchase about 20% of Opel and GAZ would possibly combine with Russian banks to pick up another 30%.
Standing in the way of Magna’s deal is pressure from Fiat, which is seeking to integrate Opel into a new global auto giant consisting of a restructured Chrysler and Fiat’s respective auto units. Furthermore, GM reportedly favors a single bidder as opposed to a group - meaning Fiat's proposal would likely prove more attractive than a Magna/GAZ combo. Of course, GM must also consider not just the present, but also the future of Opel, especially since it will retain a substantial stake in the company.